Pearse Doherty
Question:87. Deputy Pearse Doherty asked the Minister for Finance the gains in revenue from the cumulative effect of six proposed measures (details supplied). [13880/16]
View answerWednesday, 1 June 2016
Questions (87, 88)
Pearse Doherty
Question:88. Deputy Pearse Doherty asked the Minister for Finance the gains in revenue from the cumulative effect of six proposed measures (details supplied). [13881/16]
View answerWritten answers
I propose to take Questions Nos. 87 and 88 together.
I assume the Deputy's questions refer to the measure to limit the use of certain tax reliefs and exemptions (known as 'specified reliefs') by high-income individuals introduced in the 2006 and 2007 Finance Acts (the restriction was subsequently modified in later Finance Acts).
As the Deputy may be aware, Revenue publishes an annual report on the functioning of the restriction. These reports are available at: http://www.revenue.ie/en/about/publications/other.html#reports.
I am advised by Revenue that the data required to provide a definitive estimate of the yield from the totality of measures outlined by the Deputy is not available. Form RR1s, which must be returned in respect of the use of specified reliefs, are not available for the additional cases who would be newly subject to the relief restrictions under proposals (iii), (iv) and (v) concerning the computation of the unrestricted amount of specified reliefs, vis the reduction of the Relief Threshold Amount from €80,000 to either €35,000 or €30,000 and the reduction of the alternate Adjusted Income criteria from 20% to 15% or the inclusion of additional reliefs. Nor are the requisite data in respect of Trusts available to enable the yield from proposal (vi) to be estimated.
In relation to proposals (i) and (ii) in respect of the first question, based on personal income tax returns filed for the year 2013, the latest year for which data are available, it is tentatively estimated that reducing the entry level adjusted income threshold to €120,000 and the full restriction level to €200,000, would generate an additional yield in the order of €41 million.
In relation to proposals (i) and (ii) in respect of the second question, based on personal income tax returns filed for the year 2013, the latest year for which data are available, it is tentatively estimated that reducing the entry level adjusted income threshold to €110,000 and the full restriction level to €200,000, would generate an additional yield in the order of €43 million.
It should be noted that these estimates take no account of any changes in taxpayer behaviour.